Financial freedom is certainly the dream of everyone. Investing, especially at a young age, is one of the efforts that can be made by everyone to ensure a better future. One investment instrument is investing in stocks in the capital market.
Image 1.0 SID Growth YTD 2023
Referring to the data recorded in the KSEI system during 2023, there has been a consistent increase in the number of investors. The capital market recorded a growth in the number of investors reaching 11.4 million at the end of July with a year-to-date growth of 10.75%.
Demographic Role
Image 2.0 Investor Demographic-based on Occupation
The proportion of individual investors out of the total number of SID is 99.65%, while institutional investors account for 0.35%. In July 2023, the composition of individual investors by occupation was dominated by employees with a contribution of 32.84%. Students also joined the world of investment, with a percentage reaching 26.69%. The “Other” occupation group and entrepreneurs also contributed, each with 25.29% and 15.18% respectively.
Image 3.0 Investor Demographic-based on Income
Investors with incomes of Rp 10 million to Rp 100 million account for 47.16% of all individual investors. It is also noted that those with incomes below Rp 10 million also contribute as investors with a proportion of 38.65%. Those with an average income of more than Rp 100 million also contribute with a percentage of 14.2%.
Younger Generation: The Investment Generation
Image 4.0 Investor Demographic-based on Age
Based on age classification, investors under 30 years old dominate at 57.26%, indicating the readiness of the younger generation to invest for a more stable future. They are followed by those aged 31-40 at 23.18%, and the rest are in the age group over 41 years.
The Impacts for the National Economics
The increase in the number of investors and stable investment growth reflects public confidence in investment instruments. The diversity of investors from various backgrounds and ages also reflects the inclusivity of the capital market. With a growing awareness of the importance of investment, it not only benefits the investors involved but also has a significant impact on the national economy as a whole. Increased investment will ensure the continuity of economic development, absorb the workforce, reduce poverty, help drive the economy, and become one of the sources of national income, thereby improving the overall and equitable welfare of the people.
Supervised by: Dody Arifianto
Edited by: Andi Aziza Zhafira